Emmer Slams Treasury's Silence on Warren's Crypto Terror Claims

House Majority Whip Tom Emmer has criticized the U.S. Treasury's apparent silence in the face of Senator Elizabeth Warren's claims about cryptocurrency and terrorism, arguing they should have provided a timely rebuttal to address public concerns.

Emmer pointed out the perceived lack of official response from the Treasury regarding Warren's claims linking crypto to terrorism. 

This development followed the identification of inaccuracies in the data on cryptocurrency terrorism financing linked to Hamas, as reported by the Wall Street Journal.

Congressman Tom Emmer accused Treasury of dragging its feet in correcting "misinformation" about the cryptocurrency industry perpetuated by media outlets.

Emmer claimed the department had accurate data all along but failed to act, allowing "substantial damage" to the industry's reputation.

In a statement on X, Emmer wrote, "The Treasury had access to accurate data from the beginning and was responsible for rectifying the false narrative perpetuated by the media. However, it failed to do so until after substantial damage had occurred."

The consequences of this inaccurate reporting extend beyond mere misinformation, as they have bolstered Warren's anti-crypto agenda and provided momentum for her proposed legislation, the Digital Asset Anti-Money Laundering Act.

Senator Warren's vocal stance against cryptocurrency, highlighting its potential for criminal activity, has found allies in Congress, but also sparked pushback from other Senators advocating for a more nuanced approach to regulation.

Additionally, U.S. Treasury officials have dismissed Warren's claims regarding cryptocurrencies being used in terrorist attacks in the Middle East.

Grilling Brian Nelson

In a House Financial Services Committee oversight hearing, Emmer queried Brian Nelson, the undersecretary for Terrorism and Financial Intelligence, about the veracity of assertions linking digital assets to financing terrorist operations in the Middle East.

Emmer's questioning was prompted by a Wall Street Journal report claiming that Middle Eastern terrorist organizations had received more than $100 million in cryptocurrency payments from August 2021 to June 2023.
 

Following corrections to the data, prompted by a clarification from crypto research firm Elliptic, the revised figure stood at a significantly lower $12 million.

Nelson's testimony before the committee undermined Warren's narrative by debunking the idea that cryptocurrencies serve as the primary funding mechanism for terrorist groups.

According to Nelson, terrorists still largely favor traditional financial channels over digital assets for their funding activities.

He stated, "We assessed that terrorists still prefer, frankly, to use traditional products and services," as reported by FOX Business.

Emmer responded to Nelson's revelations by criticizing the Treasury's handling of the situation.